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Laxmi Organic Industries Ltd. is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates with almost three decades of experience in large scale manufacturing of chemicals. Company started its business in 1989, with initially manufacturing acetaldehyde and acetic acid in 1992, and soon thereafter moved on to manufacturing of ethyl acetate in 1996; currently among the largest manufacturers of ethyl acetate in India with a market share of approximately 30% of the Indian ethyl acetate market.The company is coming out with an IPO in the price band of Rs.129-130 between the 15th and 17th of March 2021. The issue comprises an offer for sale of Rs. 300cr by the promoter and a fresh issue of shares of Rs. 300 cr by the company. While the company will not be receiving any of the proceeds from the offer for sale it will use the proceeds of the fresh issue for expanding its specialty intermediaries manufacturing capacities and also for venturing into the manufacturing of fluorochemicals compounds. Based on FY2020 earnings the IPO is priced at a PE of 42x at the upper end of the price band along with a good ROE of 16.4% which we believe is reasonable. The company is the largest manufacturer of ethyl acetate with over 30% market share in the Indian ethyl acetate market and the only manufacturer of diketene derivatives in India with a diversified customer base. Looking at the competitive advantage and strong growth potential we are assigning a “SUBSCRIBE” recommendation to the issue.